Element 25, through its fully owned subsidiary Butcherbird Operations, has signed a binding long-term offtake agreement with OM Materials, a subsidiary of OM Holdings.
The agreement covers all manganese concentrate produced at Element 25's Butcherbird Mine in Western Australia's (WA) Pilbara region.
Specific carve-outs have been included to reserve material intended for future battery-grade, high-purity manganese sulphate production.
The agreement includes a take-or-pay structure and will run for an initial five-year term from the first shipment, with an option to extend for up to an additional five years.
Pricing will refer to international manganese ore benchmarks, with adjustments for product quality and periodic reviews to reflect market conditions.
The agreement includes defined shipping, take-or-pay and payment terms, offering Element 25 a set pathway for sales. It also contains prepayment provisions to assist with the project's cash flow needs.
OM Materials has been given exclusive global rights to market manganese concentrate that meets the agreed specifications.
Limited exceptions apply for non-conforming material and for quantities reserved for Element 25’s own downstream processing needs.
Element 25 is advancing its Butcherbird Expansion Project, which aims to increase output to a targeted 1.1 million tonnes per annum of manganese concentrate.
The agreement is conditional on elements such as board approvals, project financing, including any funding from the Northern Australia Infrastructure Facility, and regulatory clearances.
Element 25 managing director Justin Brown said: “This agreement secures a high-quality, long-term offtake partner for manganese concentrate produced at our expanded Butcherbird Operations, extending our existing relationship with OMH and its subsidiary OMM.
“OMH has established downstream smelting capability, providing a strong commercial foundation for the Butcherbird Project over the initial five years of operation, and potentially beyond that time frame.”
The Butcherbird operation currently holds an updated ore reserve of 101.4 million tonnes (mt) at 10.4% manganese, supporting production at the planned rate for more than 18 years.
The specifications of the concentrate are aligned with standard industry benchmarks.
This offtake contract follows earlier deals announced in May 2026 by Element 25 for mining and haulage services at Butcherbird.
The company expects mechanical completion and commissioning of the project to occur in the first quarter of calendar year 2027, once all outstanding contracts are finalised.
